Wednesday, January 10, 2018

Supreme Court Denies Review of Narrow Ruling on State VoIP Regulation

On January 8, the U.S. Supreme Court denied a petition to review the 8th Circuit Court of Appeals' decision in Sprint Communications v. Lozier (2017). This leaves standing the 8th Circuit’s conclusion, based on Section 251(g) of the Telecommunications Act of 1996, that federal law did not preempt state authority to regulate nonnomadic, intrastate long-distance VoIP calls. The overall import of the case is decidedly narrow. As the 8th Circuit recognized in Lozier, the FCC's Connect American Fund Order (2011) explicitly superseded the pre-1996 Act access charge regime that was at issue in the case. Thus, the decision in Lozier was essentially limited to the matter of intrastate access charges incurred by Sprint between 2009 and 2011 – when the CAF Order was adopted.

My October 2017 blog post, "The Case for Keeping VoIP Free from Legacy Regulation" discusses a pending decision by the 8th Circuit that could be far more consequential for the future of IP-based services. For further background and insight, also see the April 2013 Perspectives from FSF Scholars paper by Professor and FSF Board of Academic Advisors member Daniel Lyons: "The Challenge of VoIP to Legacy Federal and State Regulatory Regimes."